Tag Archives: FICA

Tip Jars

No Gravatar

We have a slew of clients who have a tip jar.  (Yes, these are coffee shops, by and large.)  And, our practice has been to count the funds in the tip jar every hour, and divide those funds among each person working that hour equally.   We then add those funds to the gross amounts which are subject to income and FICA taxes (and subtract the tips distributed as “cash advance”).

Continue reading Tip Jars

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
Share

Are you reasonable?

No Gravatar

As long as you do not operate as a  partnership (partners only get a draw, fully subject to all taxes, including payroll taxes), the owners of an enterprise are expected to be paid a salary.  That’s the IRS position- the one that counts.

Continue reading Are you reasonable?

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
Share